Getting a Mortgage

[aidankari 0]

My wife and I are planning on applying for a mortgage in the next couple of months in Maryland. We are hoping to avail of the $8000 tax credit which we should qualify for. I have been in the US since Feb 09 and got a part time job in Aug 09 and a full time job in Oct 09. I graduated from college in Dublin in 2003 and have worked ever since (apart from the time I was waiting on my EAD). We have joint checking and savings accounts here and I have also set up a 503K through my job. I have my own credit card since June 09 which I have been paying off every month and have a joint car loan with my wife since Nov 09 which we have been paying off every month.

From people's experience what advice/tips would you give us? Is there anything else I can do to improve my credit score? We are both working but my lack of employment history in the US may count against us. I can get a letter from my last employer in Ireland which I am told can help?

Any help would be greatly appreciated.

[milimelo 4,568]

Check your credit score and talk to the financial counselor and determine how much you can really afford - don't go for what the bank tells you your mortgage payment will be - they never include interest, taxes and insurance - you want to know the PITI not just P rate.

Also consider getting a mortgage broker to get the best rate - they are available 24/7 for you unlike the brick and mortar banks.

If you haven't yet, see if there are any buying/selling house courses available - you will learn tons of useful information making you an informed buyer/seller. I took one recently - total of 9 hrs of instruction over three Wednesday evenings.

Also, get a buyer's agent - it costs you nothing and they have your best interests in mind (example, never go to a builder without a buyer's agent - they will never give you the lowest price they would give to a buyer's agent).

Since you are applying for mortgage with your wife, I don't think your length of work history will be as much problem as it would if you were applying for it alone.

Best of luck!

[aidankari 0]

My wife and I are planning on applying for a mortgage in the next couple of months in Maryland. We are hoping to avail of the $8000 tax credit which we should qualify for. I have been in the US since Feb 09 and got a part time job in Aug 09 and a full time job in Oct 09. I graduated from college in Dublin in 2003 and have worked ever since (apart from the time I was waiting on my EAD). We have joint checking and savings accounts here and I have also set up a 503K through my job. I have my own credit card since June 09 which I have been paying off every month and have a joint car loan with my wife since Nov 09 which we have been paying off every month.

From people's experience what advice/tips would you give us? Is there anything else I can do to improve my credit score? We are both working but my lack of employment history in the US may count against us. I can get a letter from my last employer in Ireland which I am told can help?

Any help would be greatly appreciated.

Whats the Cheapest/best way to check my credit score?

[milimelo 4,568]

Whats the Cheapest/best way to check my credit score?

https://www.annualcreditreport.com/cra/index.jsp

There you also have an option to buy the scores from one or all three. Report is free by law, the rest they can charge. Be very CAREFUL what you click on so you don't end up with score/report monitoring system that charges $15 per month for nothing.

If you consider using mortgage brokers, most will pull your reports and scores for free (it was also free for those of us who participated in the above mentioned course).

Edited to add that the bank will also pull your report/scores when you apply for mortgage. By law they have to show it to you as well.

Edited January 4, 2010 by milimelo

[aidankari 0]

I heard somebody talking about getting tax relief on mortgage interest? Anybody know how this works? I am living in Marlyand.

[milimelo 4,568]

I heard somebody talking about getting tax relief on mortgage interest? Anybody know how this works? I am living in Marlyand.

You write it off on the tax return. You get a tax statement from your bank I think it's 1098 and then enter the numbers into line 10 - Schedule A- we use TurboTax and the software prompts you for that.

Also see about writing off the Mortgage Insurance - they talk about that too.

http://www.irs.gov/pub/irs-pdf/p936.pdf

[clueless_in_usa 8]

Check your credit score and talk to the financial counselor and determine how much you can really afford - don't go for what the bank tells you your mortgage payment will be - they never include interest, taxes and insurance - you want to know the PITI not just P rate.

Also consider getting a mortgage broker to get the best rate - they are available 24/7 for you unlike the brick and mortar banks.

If you haven't yet, see if there are any buying/selling house courses available - you will learn tons of useful information making you an informed buyer/seller. I took one recently - total of 9 hrs of instruction over three Wednesday evenings.

Also, get a buyer's agent - it costs you nothing and they have your best interests in mind (example, never go to a builder without a buyer's agent - they will never give you the lowest price they would give to a buyer's agent).

Since you are applying for mortgage with your wife, I don't think your length of work history will be as much problem as it would if you were applying for it alone.

Best of luck!

There is something you forgot to mention. He does not have much credit history. Therefore, his score may be lower than his wife's. If the difference is too much (650 against 750, for example), if they apply for the Mortgage together, they will be ripped off on the APR, because the bank will always use the lowest score on a joint application.

It may wise to see the difference.

[overlap 0]

FYI the score you want to check is the FICO score www.myfico.com Anything else is not the real score.

[aidankari 0]

FYI the score you want to check is the FICO score www.myfico.com Anything else is not the real score.

thanks for the advice. i got a score of 695 and my wife's is 770. I am going to work to get it up over 700 in the next couple of months.

Any advice?

[milimelo 4,568]

thanks for the advice. i got a score of 695 and my wife's is 770. I am going to work to get it up over 700 in the next couple of months.

Any advice?

Depends what your report says - if you have too many cards with balances over 1/3rd of the limit that is what it's keeping the score down. Either eliminate the balance (pay off but don't close the card) or get it below the 1/3 level - that should give you more points.

I believe it's mainly your length of history keeping the score down.

I don't know who you will get your mortgage through, but they should have someone on staff to coach you as a financial advisor.

[Flames9_RN 358]

One does NOT have to be on the mortgage, I wasn't when we bought our first place, BUT i was on the title (deed)

[overlap 0]

One does NOT have to be on the mortgage, I wasn't when we bought our first place, BUT i was on the title (deed)

Yes, but if you do that then only one income can be used to qualify for the mortgage.

[Flames9_RN 358]

That's true, but still an option for some

[paul1979 0]

I moved here in May 09 from the UK - transferred over my UK Amex card so I had some credit history and got a car loan with a co-signer in September. Somehow my score in November was 750 - better than my wife's!! We managed to get approved for a mortgage with Bank of America. It was an FHA Loan though.

I would start getting together proof of earnings from back home. I had to provide two years worth of tax returns - and when I say tax returns I provided P60s End Of Year Statements which they accepted as proof of earnings, not sure what you get in Ireland. Then the usual - two months of payslips, bank statements etc. Get together proof of earnings from back in Ireland for at least the last two years.

I'd be quick about buying a house if I were you. Doesn't the tax credit run out at the end of April? We've been looking for two months and have had terrible luck - 3 offers accepted but then one taken off the market, one which foundation issues and another the bank appraisal did not come in as high as the selling price. I know we've had bad luck but I wouldn't hang about!

[milimelo 4,568]

I moved here in May 09 from the UK - transferred over my UK Amex card so I had some credit history and got a car loan with a co-signer in September. Somehow my score in November was 750 - better than my wife's!! We managed to get approved for a mortgage with Bank of America. It was an FHA Loan though.

I would start getting together proof of earnings from back home. I had to provide two years worth of tax returns - and when I say tax returns I provided P60s End Of Year Statements which they accepted as proof of earnings, not sure what you get in Ireland. Then the usual - two months of payslips, bank statements etc. Get together proof of earnings from back in Ireland for at least the last two years.

I'd be quick about buying a house if I were you. Doesn't the tax credit run out at the end of April? We've been looking for two months and have had terrible luck - 3 offers accepted but then one taken off the market, one which foundation issues and another the bank appraisal did not come in as high as the selling price. I know we've had bad luck but I wouldn't hang about!

Yes, you have to have a contract signed by April 30 and finish the closing by June 30 to get the tax credit.